The Albanian government’s budget includes giving families money back for their energy bills, a cap on prescription prices and more help for struggling tenants.
Here’s everything you need to know about what it means for your wallet.
ENERGY BILLS
Every Australian household will receive a $300 rebate on their energy bill as part of the Albanian government’s efforts to address the rising cost of living.
Starting July 1, all households will see a $300 credit automatically applied to their electricity bills, while one million small businesses will also receive $325 off their bills.
The credits will be applied in quarterly installments.
“Just as all taxpayers receive a tax reduction, now all households will receive relief on their energy bills under the Albanese government.”
Dr Chalmers said the move, which would cost the government $3.5 billion, would not increase inflation but would put downward pressure on it.
“Treasury estimates this will directly reduce headline inflation by around half a percentage point in 2024-25 and is not expected to increase broader inflation pressures.”
Treasurer Jim Chalmers delivered the budget Tuesday night, boasting a $9.3 billion surplus driven by a strong labor market and rising commodity prices.
Tax cuts for Australians
Labor will reduce the tax rate for people earning between $19,000 and $45,000 from 19 per cent to 16 per cent.
That will give those making $45,000 a year an extra $805 a year.
‘Starting July 1, all 13.6 million taxpayers will receive a tax cut. The average annual tax cut is $1,888, or $36 per week,” Dr Chalmers said.
Here’s what you’ll get with the tax cuts:
$18,200 or less: Nothing
$19,000: $24
$45,000: $805
$60,000: $1,179
$80,000: $1,679
$120,000: $2,679
$135,000: $3,729
$190,000 and up: $4,529
Labor will reduce the tax rate for people earning between $19,000 and $45,000 from 19 per cent to 16 per cent.
FORGIVENESS OF $3 BILLION IN STUDENT DEBT FOR MORE THAN 3 MILLION AUSTRALIANS
In June of each year, HEC’s debt is indexed according to the consumer price index or annual headline inflation of the previous quarter.
This meant that those paying off student debt faced a 7.1 per cent increase in their debt, effectively acting like interest on a loan.
But under Labour’s plan, HELP or HECS debt will be indexed in line with the much lower wage price index, meaning its debt would have risen by 3.2 per cent.
Indexation would default to the lower of the wage price index or consumer price index, with Labor citing higher inflation in early 2023.
Provisions for higher wages for aged and child care workers.
On average, the amount of money students owe the ATO for their HECS and HELP debt will be reduced by $1,200.
$1.9 BILLION TO INCREASE COMMONWEALTH RENTAL ASSISTANCE BY AN ADDITIONAL 10 PERCENT, IMPACTING MORE THAN ONE MILLION AUSSIES
Struggling households will receive an additional $19 per fortnight in rental assistance payments.
But with less than a third of renters eligible for the payments and no sign of an imminent increase in supply, housing affordability is unlikely to improve for years.
The Commonwealth Rental Assistance benefit will increase by 10 per cent, the second payment increase in two years after a 15 per cent increase in 2023/24.
It would provide much-needed help to struggling young people and renters of all ages, Treasurer Jim Chalmers said as he delivered the federal budget Tuesday.
“Rising rents are another big part of the inflation challenge, and we are supporting tenants who need our help,” he said.
EXTENSION OF JOB APPLICANT PAYMENT
The government is giving more money to some people on JobSeeker who can only work up to 14 hours a week due to health problems, but do not qualify for the Disability Support Pension.
This means they will receive an additional $54.90 each week. About 5,000 people will benefit from this change.
“We know that those receiving jobseeker’s payment who have been assessed as unable to work more than 14 hours a week due to physical, intellectual or psychiatric impairment experience greater barriers to returning to employment and this recognizes their need for support additional,” said the Minister of Social Services. Amanda Rishworth explained.
GOVERNMENT-FUNDED PAID PARENTAL LEAVE RETIREMENT
The Government will provide $1.1 billion to ensure payments equivalent to the pension guarantee on its Government-funded paid parental leave.
The payments will benefit about 180,000 families each year, and the beneficiaries will mainly be women.
CHEAPER MEDICATIONS
Instead of rising with inflation, drugs will be kept cheaper through a one-year freeze on the maximum Pharmaceutical Benefits Plan for everyone with a Medicare card and a five-year freeze for pensioners and other Medicare cardholders. concession.
PAID PLACEMENTS FOR NURSES, TEACHERS AND SOCIAL WORKERS
About 73,000 students will receive $319.50 per week while they complete mandatory internships.
Until now, teaching or nursing students were expected to complete long unpaid work placements, making it difficult to survive or maintain jobs.
SALARY GROWTH
The Government has committed to funding the Fair Work Commission’s decision to increase wages awarded to aged care workers.
The Government has also committed to providing funding for a pay rise for early years education and care staff, with details to be finalized following Fair Work Commission processes currently underway.
FREE TAFE
The government will invest $90 million to offer 20,000 free TAFE places in the construction sector, including greater access to pre-apprenticeships.
The 20,000 places are in addition to the 300,000 places promised between 2024 and 2026 and will be available in all states and territories.
Part of the commitment will include support for up to 5,000 people to access pre-apprenticeship programs designed to give students work experience in construction-related trades.
INCREASED SUPPORT FOR AUSTRALIAN TRAINEES
The Labor Party has pledged to provide $265 million to incentivize employers to hire young workers for apprenticeships.
The initiative is designed to encourage people to complete apprenticeships in priority occupations by offsetting the costs associated with training.
That means employers will get an extra $1,000 and apprentices will get an extra $2,000.
Another $91 million will be spent to expand eligibility for the ‘new energy apprenticeship program’ in priority clean energy occupations.
According to the budget documents, it will “also support the development of the training system needed to train the workforce needed to meet Australia’s net zero and emissions reduction targets.”
Treasurer Jim Chalmers delivered the budget Tuesday night, boasting a $9.3 billion surplus driven by a strong labor market and rising commodity prices.
